Netflix cracks down on password sharing in the UK and US
Netflix has started its crackdown on password sharing in key markets, including the UK. The streaming giant is notifying customers they must pay £4.99 per month of they wish to share their account with those outside their household. The goal for Netflix is to boost subscriber numbers.
In some countries where the policy has already been tested, many have been hesitant due to the extra cost. In Spain, when Netflix began charging 5.99 euros for an extra account, it lost over a million subscribers in the first three months, according to Kantar.
Netflix had previously cautioned investors about potential cancellations and had stated that paid sharing would generate a larger revenue base to support future growth and service improvement. In Canada, where the changes were implemented in February, Netflix reported an increase in its paid membership base and revenue growth.
Despite the new rules, Netflix estimates that over 100 million households still share passwords.
To attract users, in the crowded streaming market, Netflix has introduced a cheaper option – one with advertisements. The company has also expanded its paid sharing program, which was piloted in select countries last year.
